• Wed. May 22nd, 2024

Weakness of the pound ‘adding £5 cost to a tank of petrol’

Byoxfordnewspaper

Sep 24, 2022

Drivers are currently paying an extra £5 per tank of petrol due to the weakness of the pound, research from the AA claims.

The British motoring association says that the cost of oil dropping back to a level seen before Russia invaded Ukraine has been “severely undermined” by the falling value of the pound.

Their research claims that the price of petrol in the UK would be “at least” 9p per litre cheaper had the pound maintained its February value of 1.35 US dollars.

This the week the value stood at 1.14 US dollars, which was a 37-year low.

The difference in pump prices is adding around £4.95 to the cost of filling up a typical 55-litre family car.

Oxford Mail: The weakness of the pound is causing people to pay more at the pump (PA)The weakness of the pound is causing people to pay more at the pump (PA)

Petrol averaged 164.8p per litre at the start of the week, down from 173.5p in mid-August.

AA fuel price spokesman Luke Bosdet said: “The influence of the exchange rate is often overlooked when drivers compare oil price movements with those at the pump.

“At the moment, it is critical. Oil and fuel on commodity markets are traded in dollars, which makes the weaker pound very bad news for motorists.

“The price of oil is back to the level at the start of the Ukraine war but petrol is 15p a litre more expensive.

“Two-thirds of that higher cost is down to the weakness of the pound.”

Bosdet did clarify that it may be possible to find a “competitive forecourt” selling petrol at below 10p per litre below average prices.